EDF Renewables has announced a significant impairment of $980 million related to its Atlantic Shores Offshore Wind project. This announcement follows Shell’s recent withdrawal from the partnership, adding to political uncertainties surrounding offshore wind initiatives in the United States.
The Atlantic Shores Offshore Wind project was a joint effort between Shell and EDF. However, after Shell exited the venture last month, it also reported a $1 billion impairment on its investment. This project aimed to develop two major offshore wind installations, Atlantic Shores 1 and 2, with a total capacity of 2.8 gigawatts, located off the coast of New Jersey.
In response to Shell’s departure, Atlantic Shores issued a statement indicating its commitment to move forward with New Jersey’s first offshore wind project while adhering to existing obligations with local, state, and federal authorities.
Meanwhile, the New Jersey Board of Public Utilities took action as well, canceling the state’s fourth offshore wind solicitation shortly after Shell’s announcement. NJBPU President Christine Guhl-Sadovy explained that the board’s decision was influenced by Shell’s exit and the overall uncertainty in the clean energy market, along with various federal actions and permitting issues.
The future of the Atlantic Shores project remains uncertain, especially after EDF’s reported impairment. Although Atlantic Shores 1 had received construction and operations plan approval from the Bureau of Ocean Energy Management last October and was expected to be completed by 2028, the recent developments have raised questions about its progress.
EDF attributed the impairment to several factors, including unfavorable political developments in the U.S., Shell’s withdrawal from the partnership, and New Jersey’s decision to cancel a tender for a project that was already at an advanced stage.